Table 29-6.
-Refer to Table 29-6. Assume there is a reserve requirement and the Bank of Pleasantville is exactly in compliance with that requirement. Assume the same is true for all other banks. Lastly, assume people hold only deposits and no currency. What is the money multiplier?
A)6
B)16.7
C)15.6
D)6.4

Question

Table 29-6. 
-Refer to Table 29-6. Assume there is a reserve requirement and the Bank of Pleasantville is exactly in compliance with that requirement. Assume the same is true for all other banks. Lastly, assume people hold only deposits and no currency. What is the money multiplier?
A)6 
B)16.7 
C)15.6 
D)6.4

Quizplus · Accepted Answer

The Answer of Table 29-6. 
-Refer to Table 29-6. Assume there is a reserve requirement and the Bank of Pleasantville is exactly in compliance with that requirement. Assume the same is true for all other banks. Lastly, assume people hold only deposits and no currency. What is the money multiplier?
A)6 
B)16.7 
C)15.6 
D)6.4

Table 29-6. -Refer to Table 29-6. Assume There Is a Reserve Requirement